Presentation AgendaPresentation Agenda

Industry OverviewMacro Trends and Vocabulary Category Definition and Role Category Assessment Category Scorecard Category Strategy In-Store Approach Recommendation and Summary

Industry at a GlanceIndustry at a Glance

• 71.4 million Households have pets• 5.2 million more by 2015• 80% will come from empty-nesters• Recession Proof

• “Better for you” products are attractive to health conscious buyers

• $ Sales grew 61% vs. total dog treats• However, only 25% of dog treat shoppers buy health treats

Almost half of all dog

homes have small dogs

Almost half of all dog

homes have small dogs

Industry VocabularyIndustry Vocabulary

Dog treat category is emotional•consumer different than the shopper

Shopper - makes purchase

Consumer - dog and cat

QuickTime™ and a decompressor

are needed to see this picture.

Macro TrendsMacro Trends

5.4%

13.0%

5.0%

3.2% 6.5% 2.1%

2007 2008 2009

Pet FoodDry Grocery

• Feeding pets is non-discretionary for pet parents

• People willing to give up own food and medicine for pets

Category RoleCategory Role

• Convenient for shoppers at grocery

• Too many products for shopper concentration

• Treats have opportunity to drive pet category

• Opportunity to sell treats and food together

• Heavy buyers purchase $110 vs others’ $12

• Heavy buyers = only 20% of shoppers

• 70% total dollar sales

Pet Treat SalesPet Treat Sales

• To win in dog, must win in treats

• Profitability of treats carries over into dog category

• Lose in dog treats = low category growth

Consumer Decision TreeConsumer Decision Tree

Biscuits Soft & Chewy

Dog Snacks

Long Lasting

Form Size

Package Size

Brand

Form Size

Package Size

Brand

Package Size

Form(Sticks,Strips, A/O)

Brand

Roundy’s Current Decision Tree

Recommended Decision Tree

Who are your Customers?Who are your Customers?

Roundy’s Market ShareRoundy’s Market Share

•Roundy’s •Pet Dog Market Share (52 weeks): 38.9%•Growth in share of 1.3 share points•Share point value: $465,005

Roundy’s SalesRoundy’s Sales

•Roundy’s •Pet Dog total dollar sales volume was down 1.9%

•Loss of $343,865•ROM also experienced decrease of 7% in sales volume.

•Loss of $2,141,041

Pet Treats ACV & % of SalesPet Treats ACV & % of Sales ACV

Volume

% of ACV

% of

Volume

13

Week52

Week13

Week52

Week

13 Week

52 Week

13 Week 52 Week

Del Monte$349,855

$1,194,461

111,237

396,602

Del Monte

30.20%

27.23% 32.30% 30.02%

Roundy's$35,43

1$111,26

315,73

845,297 Roundy's 3.06% 2.54% 4.57% 3.48%

P&G $4,438 $71,272 1,602 24,155 P&G 0.38% 1.62% 0.47% 1.83%

Nestle$355,942

$1,389,100

108,258

435,348

Nestle29.00

%31.67% 31.44% 32.95%

Mars$141,8

57$463,10

440,14

8133,26

9Mars

12.25%

10.56% 11.66% 10.09%

VMG$82,73

0$293,93

021,77

672,654 VMI 7.14% 6.70% 6.32% 5.50%

SUMITOMO

$58,145

$239,704

14,648

62,122SUMITO

MO5.02% 5.46% 4.25% 4.70%

Other$22,63

7$93,416 2,260 29,407 Other 1.95% 2.13% 0.66% 2.23%Del-Monte

the

13 Week Winner!

Strong Brand Growth

13 Week Trends13 Week Trends

Sales% Chg vs. YAG

Market Share

Pt Chg vs. YAG

Opportunity /

SurplusSales

% Chg vs. YAG

DEL MONTE FOODS 349,851 -15.6% 53.8% -4.2 -16,538 300,743 0.2%

NESTLE HOLDINGS INC

335,931 -11.5% 57.4% -1.2 6,207 249,556 -7.0%

MARS INCORPORATED

156,751 19.3% 67.0% 0.3 25,050 77,109 17.8%

CTL BR 44,969 494.5% 45.2% 36.1 -11,062 54,525 -28.0%

VMG PARTNERS 22,217 337.8% 77.7% 14.1 6,118 6,370 119.8%

PROCTER GAMBLE 19,168 -15.3% 65.8% 1.2 2,756 9,974 -19.6%

SUMITOMO 15,334 14.3% 78.8% -3.3 4,371 4,133 41.1%

Big Improvement in Private Label &

Waggin Train showing tremendous growth

52 Week Trends52 Week Trends

Sales% Chg vs. YAG

Market Share

Pt Chg vs. YAG

Opportunity /

SurplusSales

% Chg vs. YAG

DEL MONTE FOODS 1,421,574

-6.8% 54.9% -0.1 -29,3691,167,30

7-6.3%

NESTLE HOLDINGS INC

1,345,194

-5.0% 56.8% -1.0 16,8971,024,85

3-1.1%

MARS INCORPORATED

528,582 -16.7% 67.3% 4.6 88,654 256,371 -32.0%

CTL BR 175,835 -20.0% 43.3% -1.9 -51,801 230,330 -13.5%

PROCTER GAMBLE 72,066 -26.8% 62.1% -1.6 7,049 43,942 -21.4%

VMG PARTNERS 67,789 480.0% 82.7% 17.7 21,841 14,194 125.5%

SUMITOMO 56,723 211.4% 78.5% 1.8 16,245 15,500 180.3%

HUGE Growth for Waggin Train and

Hartz

RecommendationsRecommendations

Section 1

Hard Treats

Brand

Size

Section 2

Chewy Treats

Brand

Size

Section 3

Health Treats

Brand

Size

•Delete unproductive items and focus on category drivers

• Arrange products in Sections by:

FORM

BRAND SIZE

Current PlanogramCurrent Planogram

Proposed PlanogramProposed Planogram

Blade RecommendationBlade Recommendation

BISCUITS

SOFT

&

CHEWY

HEALTH

&

NUTRI

ENTS

delmonte pet treats category review

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